Government officers and industry stakeholders disagree on the number of eggs produced but agree that there is occasionally a shortage.
According to the Department of Livestock Services (DLS), the estimated annual demand for eggs is 104 eggs per capita. With a population of 170 million, this translates to a requirement of approximately 17.7 billion eggs per year, or an average of 48.4 million eggs per day.
DLS estimates that the current annual production of eggs is 135 eggs per capita. For a population of 170 million, this equates to an estimated production of 22.9 billion eggs per year, or an average supply of 62.8 million eggs per day.
Based on DLS estimates, egg production exceeds demand, leading various government agencies to allege that high egg prices are caused by a "syndicate" or cartel.
However, DLS officials acknowledge that mismatches between supply and demand can occur during certain seasons or in the event of natural disasters, causing price volatility.
Dr ABM Khaliduzzaman, director (Production) at DLS, said: "Between August and October, there is a shortfall in egg supply due to increased demand triggered by shortages of vegetables and fish, which drives up prices."
He added that inefficiencies in the supply chain, with eggs changing hands multiple times, result in a significant disparity between the price farmers receive and what consumers pay.
Private-sector stakeholders argue that egg production is uncertain. Kazi Zahin Hasan, Director of Kazi Farms, explained: "The total daily production from commercial egg farms is estimated at about 35 to 40 million eggs. Eggs are also produced by backyard poultry, but the exact number is unknown, making total egg production uncertain."
He also noted that egg supply fluctuates. "In hot weather, hens produce fewer eggs, reducing supply and increasing prices in summer. This year, many egg farms were flooded, causing a severe shortage. High prices always indicate a shortage," he said.
Kazi Zahin Hasan further explained that egg demand is also inconsistent. "Consumers often substitute one food for another. When winter vegetables are available, they buy vegetables instead of eggs, lowering demand and prices in winter. Conversely, if the supply of fish or vegetables declines, consumers demand more eggs. This year, floods reduced the supply of farmed fish and vegetables, leading to a sudden spike in egg demand and prices."
He criticized the tendency of some government officials to attribute price increases to market manipulation. "When egg prices rise, many government officers immediately conclude that a cartel or syndicate is manipulating the market. However, thousands of producers and traders participate daily, all seeking to sell and buy at the best prices. In such a competitive market, if any producer demands a high price, they won't sell their eggs. Price increases in competitive markets occur due to reduced supply or increased demand, not collusion. Government agencies should consult economists to study the market before making such accusations."
Kazi Zahin Hasan also cautioned against baseless accusations of price manipulation. "These allegations discourage investment. Egg demand grows annually, requiring regular investment. However, poultry companies face harassment from unfounded claims of manipulation, which must stop. Without investment, the industry cannot grow."
DLS officials dismissed the possibility of a syndicate in an industry with thousands of producers. They emphasized that inefficiencies in the supply chain are the primary reason consumers face high prices.